An institution which does not meet the definition of institution of higher education contained in Texas Education Code §61.003 and wishes to offer distance education to students in Texas must follow the requirements in paragraph (1) or (2) of this section. For the purposes of this section distance education shall mean education or training delivered off campus via educational technologies where the student(s) and the instructor(s) are separated by physical distance and/or time.
  (1) Exempt Institutions.
    (A) An institution is exempt and does not need to receive permission from the Board to offer distance education programs and courses to Texas students if it fulfills the following:
      (i) Accredited to offer degrees at a specific level either by an accrediting agency recognized by the Board or an accrediting agency recognized by the Secretary of Education of the U.S. Department of Education or approved by a Texas state agency which authorizes the school's graduates to take a professional or career and technical state licensing examination administered by that agency;
      (ii) No physical presence in the state as defined by §7.3 of this chapter (relating to Definitions); and
      (iii) Meets and agrees to comply with Council of Regional Accrediting Commissions (C-RAC) provisions as listed in this section.
    (B) An institution is also exempt and does not need to receive permission from the Board to offer distance education programs and courses to Texas students if it is covered by a reciprocal state exemption agreement.
    (C) An institution's exemption applies only to the degree level for which the programs or institution is accredited.
    (D) An institution's exemption under subparagraph (A) or (B) of this paragraph continues as long as it is in compliance with subparagraph (A) or (B) of this paragraph. Exempt institutions must also maintain compliance with subparagraph (C) of this paragraph. If an institution is no longer accredited by an accrediting agency recognized by the Board or an accrediting agency recognized by the Secretary of Education of the U.S. Department of Education or no longer approved by a Texas state agency which authorizes the school's graduates to take a professional or career and technical state licensing examination administered by that agency and/or maintains a physical presence in Texas or if an institution is no longer covered by a reciprocal state exemption agreement, the institution is no longer eligible for an exemption and must receive Board authority to offer distance education to Texas students. The institution would need to either submit an application for a Certificate of Authority as outlined under §7.8 of this chapter (relating to Institutions Not Accredited by a Board-Recognized Accreditor) or for a Certificate of Authorization as outlined under §7.7 of this chapter (relating to Institutions Accredited by Board-Recognized Accreditors).
  (2) Nonexempt Institutions.
    (A) An institution is not exempt and must receive Board permission to offer distance education programs and courses to Texas students if it fulfills any of the following:
      (i) Is accredited to offer degrees at a specific level by an accrediting agency recognized by the Board or approved by a Texas state agency which authorizes the school's graduates to take a professional or career technical state licensing examination administered by that agency and maintains a physical presence in Texas as defined by §7.3 of this chapter; the institution would need to submit an application for a Certificate of Authorization as outlined under §7.7 of this chapter; or
      (ii) Is not accredited to offer degrees at a specific level by an accrediting agency recognized by the Board or an accrediting agency recognized by the Secretary of Education of the U.S. Department of Education nor approved by a Texas state agency which authorizes the school's graduates to take a professional or career technical state licensing examination administered by that agency. The institution, whether or not it maintains a physical presence in Texas as defined by §7.3 of this chapter, would need to submit an application for a Certificate of Authority as outlined under §7.8 of this chapter.
    (B) An institution that would like to offer a degree program or courses leading to a degree in a religious discipline via distance education is exempt from seeking Board approval. A religious institution that would like to offer a degree program or courses leading to a degree in a non-religious discipline via distance education must follow the requirements outlined in subparagraph (A)(i) and (ii) of this paragraph.
    (C) As part of its qualification or continued approval for a Certificate of Authorization or a Certificate of Authority, a nonexempt institution must meet and agree to comply with C-RAC provisions as listed in this section before offering distance education.
  (3) Board staff shall utilize the best practices in postsecondary distance education as adopted by the C-RAC as standards for approval of distance education offered in Texas or to Texas residents. C-RAC provisions applicable to all institutions offering distance education under this section include:
    (A) Online learning is appropriate to the institution’s mission and purposes;
    (B) The institution’s plans for developing, sustaining, and, if appropriate, expanding online learning offerings are integrated into its regular planning and evaluation processes;
    (C) Online learning is incorporated into the institution’s systems of governance and academic oversight;
    (D) Curricula for the institution’s online learning offerings are coherent, cohesive, and comparable in academic rigor to programs offered in traditional instructional formats;
    (E) The institution evaluates the effectiveness of its online learning offerings, including the extent to which the online learning goals are achieved, and uses the results of its evaluations to enhance the attainment of the goals;
    (F) Faculty responsible for delivering the online learning curricula and evaluating the students’ success in achieving the online learning goals are appropriately qualified and effectively supported;
    (G) The institution provides effective student and academic services to support students enrolled in online learning offerings;
    (H) The institution provides sufficient resources to support and, if appropriate, expand its online learning offerings; and
    (I) The institution assures the integrity of its online offerings.

Source Note: The provisions of this §7.14 adopted to be effective November 29, 2011, 36 TexReg 8012; amended to be effective May 29, 2012, 37 TexReg 3801; amended to be effective February 26, 2013, 38 TexReg 1152; amended to be effective November 23, 2016, 41 TexReg 9113